An Phat Holdings' 2023 profit target is 6.3 times higher than 2022

DNHN - A representative of An Phat Holdings' Board of Directors stated at the General Meeting of Shareholders that the group's core business activities are still operating normally.

In 2023, An Phat Holdings Group Joint Stock Company (APH/HoSE) held its Annual General Meeting. Mr. Pham Anh Duong, Chairman of the Board of Directors of the Group, answered the questions directly during the meeting. Inquiries from shareholders concerned the company's financial situation, business plan, and development strategy, as well as new project development plans.

An Phat Holdings Group reported consolidated net revenue of nearly VND 17,327 billion in 2022, an increase of more than 17% compared to 2021, and a total of 105 plans at the 2022 Annual General Meeting of Shareholders. suggest.

However, the profit after taxes in 2021 was only 57 billion dongs, a decrease of nearly 76% compared to 2021 and a 10% achievement of the target. The primary reason is that the selling price of commercial plastic resins dropped sharply in the second half of 2022, resulting in a significant decrease in the group's commercial gross profit; concurrently, the Group must account for inventories to prevent price fluctuations.

A representative of An Phat Holdings' Board of Directors stated that the group's core business operations are still operating normally. In which the production of packaging materials and plastic additives, industrial real estate, engineering plastics, and precision molds recovered and expanded. Specifically, the gross profit of plastic production in 2022 is estimated to be VND 1,331 billion, up 18% from 2021; the gross profit of industrial zone real estate is estimated to be VND 118 billion, the same as in 2021.

Phat Holdings recorded a loss of 2,513 billion dongs from joint ventures and associates in the fourth quarter of 2022, compared to a profit of 1,302 billion dongs in the third quarter. The company reported a loss of 161.8 billion dongs in the fourth quarter of 2022, as opposed to a profit of 59 billion dongs in the fourth quarter of 2021.

According to the company's explanation, even though the production and business activities of joint ventures and associates were unaffected, revenue in the fourth quarter of 2022 was nearly equivalent to the fourth quarter of 2021, but the market price of plastic resin was unaffected. The declining market has reduced the plastic resin company's profit.

Concurrently, the company increased the provision for inventory to prevent price fluctuations, resulting in a significant decline in profit after taxes during the same period. Additionally, An Phat Holdings reported that the production of plastic goods, industrial real estate, and services is all stable.

PV (t/h)